Direxion Daily S&P Biotech Bull 3X Shares company info

What does Direxion Daily S&P Biotech Bull 3X Shares do?
Direxion Daily S&P Biotech Bull 3X Shares (NYSE:LABU) is an exchange-traded fund (ETF) aiming to provide investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the S&P Biotechnology Select Industry Index. This investment vehicle is traded exclusively on the New York Stock Exchange Arca. Direxion Daily S&P Biotech Bull 3X Shares facilitates high-risk, high-reward opportunities for investors seeking leveraged exposure to the biotechnology sector. The ETF focuses on companies engaged in research, development, manufacturing, and distribution of biotechnological products. Its objectives revolve around enabling aggressive investment strategies by mirroring triple the daily ups and downs of biotech stocks, making it suitable for short-term traders aiming for significant returns through sector-specific movements.
Direxion Daily S&P Biotech Bull 3X Shares company media
Company Snapshot

Is Direxion Daily S&P Biotech Bull 3X Shares a public or private company?

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Ownership
Public

How many people does Direxion Daily S&P Biotech Bull 3X Shares employ?

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Employees
55

What sector is Direxion Daily S&P Biotech Bull 3X Shares in?

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Sector
ETF

Where is the head office for Direxion Daily S&P Biotech Bull 3X Shares?

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Head Office
New York, United States

What year was Direxion Daily S&P Biotech Bull 3X Shares founded?

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Year Founded
2015
What does Direxion Daily S&P Biotech Bull 3X Shares specialise in?
/Leveraged ETF /Biotech Sector /Financial Products /Market Exposure /Investment Services /Asset Management

What are the products and/or services of Direxion Daily S&P Biotech Bull 3X Shares?

Overview of Direxion Daily S&P Biotech Bull 3X Shares offerings
Leveraged Long Exposure to S&P Biotech Index: LABU aims to deliver 3 times the daily return of the S&P Biotechnology Select Industry Index. This means it amplifies the daily performance of the index, potentially leading to significant gains (or losses) compared to directly investing in the underlying biotech companies.
Focus on Biotechnology Sector: LABU focuses on the S&P Biotechnology Select Industry Index, which tracks the performance of companies in the U.S. listed biotechnology sector. This provides targeted exposure to this specific industry segment.
Daily Reset Mechanism: Due to the leveraged nature, LABU uses a daily reset mechanism. This means it resets its holdings each day to achieve its 3x daily return objective. This is because compounding leveraged returns over multiple days can lead to significant deviations from the target multiple.
Potential for High Volatility: The leveraged nature of LABU amplifies not only gains but also losses. This means its daily share price can fluctuate significantly, making it a riskier investment compared to non-leveraged ETFs.
Geared for Short-Term Trading: LABU is typically suited for short-term trading strategies due to the daily reset mechanism and potential for high volatility. Long-term holding of LABU may not deliver the intended 3x return due to the compounding effect of daily resets.
Exchange-Traded: Shares of LABU are traded on a stock exchange like any other stock, allowing for easy buying and selling throughout the trading day. This provides flexibility for investors managing their portfolios.